CN (TSX:CNR) reports record grain movement year

• CN (CNR) has reported a new record in grain movement of more than 30 million tonnes during the 2019 to 2020 crop year
• During the year, over 28.2 million tonnes of grain was moved from Western Canada, with a further 1.1 million tonnes moved through intermodal containers
• As part of the company’s 2020-2021 Grain Plan, it intends to increase bulk and hoppers cars to 7,600 per week
• The company’s success comes despite a number of challenges, including harvest delays and movement interruptions
• CN (CNR) is currently down 1.39 per cent and is trading at C$129.37 per share

Canadian railway operator CN (CNR) has reported a new record in grain movement during the 2019 to 2020 crop year.

Over the course of the year, the company moved over 28.2 million tonnes of grain from Western Canada, along with a further 1.1 million tonnes that was moved through intermodal containers.

This exceeds the previous record that was set in the preceding year by approximately 0.8 million tonnes.

CN noted that the recent performance represents a significant achievement in the face of several challenges, including exceptionally poor weather that resulted in harvest delays, as well as a Ministerial Order that reduced speeds following the derailment of a non-CN train.

The company also experienced several movement interruptions, including an eight-day strike in November 2019 courtesy of the Teamsters Union, along with almost a month of blockades in February this year.

JJ Ruest, President and CEO of CN, said that although the company achieved its best grain movement volumes on record, he is far from complacent.

“As an essential transportation service…we remain committed to continue making capacity-enhancing investments to our network and to upgrade our rolling stock, including the purchase of 1,500 additional railcars manufactured in North America in 2020-2021.

“With all those, we are on our way to reach continuously improved performances. These investments benefit our grain customers as well as all those from the other sectors we serve,” he added.

As part of its 2020-2021 Grain Plan, CN intends to increase its capacity to 7,600 bulk and processed hopper cars per week, with a reduced number of 6,100 per week scheduled to operate in the quieter winter months.

CN (CNR) is currently down 1.39 per cent and is trading at C$129.37 per share at 12:18pm EDT.